Legislative Ambly

wrong. It must be assumed, however, that the Government feels that it has a good reason for not divulging more of the facts than have been given out. Because, from a political point of view, the Government could only gain by full disclosure. After all, this was a project of the Shaw Government and if it as gone sour it is very likely be— cause of poor judgment on the part of the previous administration. Premier Campbell issued a lengthly statement on Friday evening along with his announcement that the plant would close. The statement, like all such statements, was intended to reveal only as many of the facts as he wanted to reveal, and to conceal those he felt should be concealed. However, we found one paragraph that was disturbing, and we feel it should either have been omitted or contain more explanation. It said either too little or too much. The paragraph is as follows: The Government views with alarm the findings of the external audit that funds have been diverted by the Georgetown Companies to affiliated companies, some of which are outside the province. If this means anything it must mean that money advanced by the province to finance industrial developments within the province, and for the benefit of the people of the province has been used leg- ally or illegally, the Premier doesn’t say which, to finance other operations in other provinces which are of no benefit to the people of Prince Edward Island. This is an extremely serious allegation and this much having been said, a full explanation should be given." No explanation was ever given by the Premier or the government for this allegation. There is also the pertinent question as to whether the two industries of Georgetown are actually viable. The Premier says that Gulf Garden Foods, under pre- sent operating methods, is not a viable industry and we have heard the suggestions that, considering the amount of capital invested in both companies, most of it by the people of this Island, it is impossible for them to operate profitably. The question, in brief, is, are they viable industries under any circumstances? We suggest that it is a question that should be answered to the satisfaction of the people of the Province without delay. The Premier at that time had in his hands the answer to that uestion in the form of the report of Canadian Plant Processing, and did not make it pu lic. He didn’t answer the suggestion from the editorial writer of the Summerside Journal, and he didn’t answer the demands of other people to tell the people what was going on. He just said it wasn’t a viable operation. The Guardian also had this to say on December 5th; “The premature closing of Gulf Garden Foods at this pre-Christmas Season, and just a few weeks before the fishing season ends,” he was a little bit wrong there, it was not just a few weeks, it was a month and a half before the fishing season ended, “is a serious blot not only to the people it would throw out of work in the Georgetown area generally, but to the whole economy of the province. Premier Campbell has stated that the company has already been heavily financed by public funds and the Govern- ment cannot conscientiously approve any further committments to serve immediate financial aid to the company and would not result in a permanent solution. The Gov- ernment, he said, views with alarm the findings of the external auditors that funds have been diverted by the Georgetown companies to affiliated companies, some of which are outside the province.”

I have examined the statements which the Premier has tabled in the House and I have been unable to find any leads that might suggest that their funds were diverted outside the province. Perhaps the Provincial Secretary, being an accountant, could look

it over and enlighten me on this point.

He says, “It is difficult at this point to forecast the immediate future of the company and certainly remature to speculate publicly on what the company or the Government will do." e said, “Several alternatives were made available to ensure continued operations of the plant next spring. In the meantime, arrangements would be made for the supervision of the plant and equipment should the plant remain closed.”

In the circumstances, press comments would do little to clarify the issue or re- solve the controversy. What we cannot understand is why, in view of the gravity of the situation, the matter was not brought up by the Government at the special Session of the Legislature this fall. Surely it was of more public concern than the appointment of an extra non-portfolio member of the Executive Council. Perhaps another Special Ses- sion should be called to rectify this submission and have the whole matter ventilated in the light of the external auditor’s report to which the Premier has referred. If this re- port has activated Government policy, then it is time indeed that it was subjected to public scrutiny.

I would like to ask both the Premier and the Provincial Secretary what section of the external audit report shows that government funds have been misused in

Georgetown 2 No answer “I —836—